Housing Snapshot
The cost of framing lumber continues to decline slowly; it fell to $323 per 1,000 board feet last Friday, down from $326 a week earlier, according to Random Lenths. Prices for 15/32-inch, 3-ply CDX Southern Westside plywood fell $5 to $545 per 1,000 square-feet at the end of last week, while 7/16-inch OSB North Central was unchanged at $465. Although the rapid run-up that began in the spring appears to have ended, prices are far higher than a year earlier: $240 and $162, respectively, for the two Random Lengths indexes. Mortgage interest rates were creeping up again last week for the second week in a row, but with prospects for inflation remaining low, Freddie Mac Chief Economist Frank Nothaft and Research Director Buchi Ramagopol are predicting that rates will range from 6%-6.25% on average through the first half of 2004. They expect single-family originations to drop 40%, from $3.3 trillion this year to $1.9 trillion in 2004, as refinancings decline. Refinancing is expected to account for about 65% of new loan applications this year and decline to about one-third next year. [ MORE ]
Mortgage Interest Rates
30-Year Fixed-Rate: 6.05%
15-Year Fixed-Rate: 5.36%
1-Year ARM: 3.79%
Housing Starts - Sep. 2003*
Total: 1.89 million
Single-Family Starts: 1.52 million
Multifamily Starts: 368,000
New Home Sales Aug. 2003*
1.15 million
Existing Home Sales Aug. 2003*
6.47 million
* Seasonally adjusted annual rate